Moving forward together.

Just like having a blueprint does not build a home, having a financial plan alone does not produce results. That’s why we will work hand-in-hand with your existing professional advisors (e.g. tax and legal) to help ensure your plan is properly implemented in a timely and efficient manner.

Our job is to hold each team member accountable – including you – to help ensure your entire financial house is in order today and stays that way in the future. This will help instill confidence, knowing that whatever happens in the markets, economy or the world, we’re always in pursuit of your goals, together.

Executive Summary

Our process for fund and manager selection for use with our Discretionary Clients was created in 1999 and the Global Financial Stress Index was incorporated into the process in 2012.

• On a daily basis, using the Global Financial Stress Index we determine how much, if any of a portfolio is invested in risk assets. (assets subject to price change)
• An asset allocation is derived for each client based on risk tolerance and needs. This is the Strategic allocation
• On top of the Strategic allocation we add a Tactical allocation. This is a size and style fine-tuning of the Strategic allocation. We also add an overweight/underweight to each category with a one to two year forward looking outlook
• Once we have established the size of each bucket, we use the Morningstar database to screen managers monthly based on the Morningstar Category rank. We look for ratings in the top quintiles for the past one, three, and five years.
  
  • We then begin the process of eliminating managers. Factors for elimination include concentrations; new managers; inconsistent performance; significant use futures, swaps, shorts, and derivative contracts.
  • After a successful completion of our due diligence process with the leading candidate, the manager is added to the portfolios.
• This bottom up reviews of all managers is performed monthly. Managers that no longer meet the criteria, managers that have had a portfolio manager change, and managers that have closed the fund are replaced.
• Non-taxable portfolios are rebalanced when a managers is replaced or at least quarterly. Taxable accounts are reviewed individually for tax consequences before manager changes and the entire portfolio is reviewed at least semi- annually for potential rebalancing.

We continue on a daily basis to monitor the Global risk environment to determine the exposure to risk assets (assets subject to price change). Exposure to risk assets is reduced as risk increases and increased as risk declines.

Diversification and asset allocation do not ensure a profit or protect against a loss. Depending on individual asset allocation objectives or strategies, additional risks may apply. Investments mentioned may not be suitable for all investors. Past performance may not be indicative of future results. Every investor's situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Investing involves risk and you may incur a profit or loss regardless of strategy selected.